Tax Law

Treatises

Research Guide

Statutes

The Internal Revenue Code

The Internal Revenue Code (hereinafter "IRC") was organized in 1939
and reorganized in 1954 and 1986. The 1986 IRC (as amended) is the
present body of federal taxation law. It is found in Title 26 of the
United States Code.

The IRC is divided into eleven subtitles (A-K) and further subdivided
into chapters and subchapters. Subchapters often consist solely of
certain tax aspects. Thus, partnership tax is in Subtitle A, Chapter 1,
Subchapter K (Title 26 of U.S.C.), or individual income is in Subtitle
A, Chapter 1, Subchater B.

Other United States Code Sections

Other titles of the U.S.C. may contain tax provisions (usually if
another agency has some form of responsibility). Use secondary treatises
or the topical index to the United States Code to find them. Note that
many legislative tax acts may not get codified.

Enactment, Effective and Sunset Dates

Enactment dates (when an Act becomes law) occur upon
presidential signature, congressional veto or some specified date within
the Act.

The effective date is when the Act's particular
provisions apply to a particular transaction (which can pre-date
enactment). Effective dates often do not appear after codification in
the IRC, so look in the Act.

A sunset clause is a provision that terminates or
repeals all or portions of a law at a certain date or event. They are
often extended through legislation called extenders - keep an eye out
for them.

Treasury regulations are either: (i) interpretive – those formulated by the IRS for the enforcement and interpretation of the IRC as authorized by 26 USC § 7805 or, (2) legislative – technical rules formulated by IRS experts under a specific code section. Interpretive and legislative regulations are either final, temporary or proposed.

Final/Temporary

Final and temporary regulations issued by the IRS are called Treasury Decisions (T.D.). Treasury Decisions are printed in the Federal Register.
Each Treasury Decision has an official interpretation (very helpful).
Treasury Decisions are numbered in order of issuance without reference
to any IRC section, e.g. T.D. 9354. Unless otherwise indicated, both
final and temporary regulations are effective upon publication in the
Federal Register.

Treasury Decisions are then annually codified in the Code of Federal Regulations
(CFR). Note that, (1) a single Treasury Decision can amend various
sections and, (2) official interpretations do not carry over into the
CFR.

Proposed

Before becoming a Treasury Decision, final or temporary regulations
are printed in the Federal Register as Proposed Regulations (also known
as "notices of proposed rulemaking"). After the publication of a
proposed regulation, the public has a certain period of time to comment.

A proposed regulation will then either be (1) published in the
federal register as a Treasury Decision (final or temporary regulation),
(b) adjusted in accordance with comments and proposed again in the
federal register or, (3) rejected. Proposed regulations are important to
research because (a) the IRS has the authority to apply regulations
retroactivley and (b) most will become final/temporary.

Proposed regulations have changed their numbering system over time,
but usually include some form of letter-number combination. The current
number begins with REG and is followed by an assigned number and year
the proposed regulation was opened, e.g. REG-139059-02.

Top
===========================================================Tax Court System

Federal trial courts have exclusive jurisdiction over
federal tax controversies (not to be confused with state taxes and state
tax controversies in state courts). There are three courts of original
jurisdiction for federal tax cases. Each court has their own rules of
court, so check them out.

Federal Courts

United States Tax Court

The United States Tax Court hears disputes involving a levied tax
that has not yet been paid by the taxpayer (usually a notice of
deficiency). Parties are usually the taxpayer against the
“Commissioner.” Jury trials are unavailable. Between 1924 and 1942 the
U.S. Tax Court was called the Board of Tax Appeals. Between 1942 and
1970 the U.S. Tax Court was called the Tax Court of the United States.

Regular decisions from the United States
Tax Court concern new areas or interpretations of the IRC that are deemd
useful for precedent. They are the most authoratative. When citing to
the Reports of the United States Tax Court, use T.C. (e.g. 124 T.C. 32
(2001)).

In contrast, memorandum decisions are
based on factual situations dealing with well settled legal issues. They
are not officially published by the Tax Court and as such have a lesser
authority. When released by the court, they are cited as T.C. Memo.
Decisions are appealed to the appropriate Circuit Court of Appeals.

United States Court of Federal Claims

The United States Court of Federal Claims can hear disputes when a
tax liability has been assessed and paid, and a refund claim by the
taxpayer has been denied. The opposing party is always the “United
States.” The court has concurrent jurisdiction with United States
District Courts on tax refund controversies. Jury trials are
unavailable.

The court was known as the United States Claims Court (1982-1992),
United States Court of Claims (1948-1982) and Court of Claims of the
United States (1863-1948). Decisions are appealed to the Court of
Appeals for the Federal Circuit.

United States District Courts

Federal District Courts hears disputes when a tax liability has been
assessed and paid, and a refund claim by the taxpayer has been denied.
The opposing party is always the “United States.” Jury trials are
available. Decisions are appealed to the appropriate Circuit Court of
Appeals.

Appeals

Trial court decisions (from all three courts) are appealed to the
Circuit Court of Appeals or Court of Appeals for the Federal Circuit.
Very few cases reach the United States Supreme Court.

Documents published in the I.R.B. and C.B. are intended for public consumption and guidance.

Revenue Rulings (Rev. Rul.)

Revenue rulings indicates how the IRS will apply the Code to a
specific factual situation. Originally, revenue rulings were issued in
response to a specific private letter ruling. Today, the IRS issues
revenue rulings in areas percieved to be of public interest. Note that
later revenue rulings can affect older ones.

A taxpayer with substantially the same facts can rely on a ruling;
otherwise they are not as authoritative as treasury regulations. But
remember, they are not binding on courts. Revenue rulings (as issued by
the IRS) are designated by the year and number of publication, e.g. Rev.
Rul. 99-109.

Revenue Procedures (Rev. Proc.)

Revenue procedures are statements issued by the IRS on IRS practices
and procedures relevant to the public. Those of general applicability
may get published in the CFR, else look to the I.R.B. Some are
re-published annually and provide guidance on how to obtain rulings,
determinations, etc. Revenue procedures are designated by the year
(since 1955) and number of publication, e.g. Rev. Proc. 85-219.

Notices & Announcements (Ann.)

Notices provide guidance for taxpayers before a ruling or procedure
becomes available. Announcements are less formal than notices. Notices
and announcements are designated by the year and number of publication,
e.g. I.R.S. Notice 99-12.

Documents not published in the Internal Revenue Bulletin but issued by the IRS

These documents are not published in the I.R.B. but elsewhere by
commercial vendors. They consist of written determinations made public
under the FOIA. What follows is a selected list.

Private Letter Rulings (Priv. Ltr. Rul.)

Like a revenue ruling, a Private Letter Ruling applies to a
taxpayer's specific facts. They are requested by taxpayers prior to a
transaction. A Private Letter Ruling may be re-issued as a revenue
ruling.

Technical Advice Memoranda (TAM or Tech. Adv. Mem.)

Technical Advice Memoranda are issued by the National Office of the
IRS. They are like revenue and private letter rulings but are requested
from an IRS agent when a question arises from a tax audit. They can be
turned into a revenue ruling if important enough.

Determination Letters are issued by regional offices and deal with less controversial questions.

Chief Counsel Memoranda (Gen. Couns. Mem.
or GCM) are documents issued by the IRS Chief Counsel’s Office. They
indicate the reasoning and authority used in rulings and TAMs.

Actions on Decision (AOD) is a memorandum prepared by the IRS after losing a significant case, which recommends the next step.

Field Service Advice (FSA) are requested
by field officers from the national office when a case presents a
significant legal question of first impression. Field Officers can use
these instead of a TAM, and without the taxpayers knowledge.

Topical Index

NOTE - Many of these resources are often
available online. However, the electronic resources are limited in
availability, depending on whether a patron is a current or past Suffolk
law student or whether you are on campus or not. Electronic ources
include:

Table of Sources

NOTE
- Many of these resources are often available online. However, the
electronic resources are limited in availability, depending on whether a
patron is a current or past Suffolk law student or whether you are on
campus or not. Electronic sources include: